Accepting Micro Payments For Your Website Or Online Business
The number one drawback for online sellers and website owners accepting and processing micro payments is the very high charges charged by cost processors and credit card firms, which can typically eat into a significant portion of the cost revenue stream.
Before we look at the various options and options in dealing with this pervasive problem, we should first outline what constitutes a micro payment.
A micro cost is a payment for an merchandise or 소액결제현금화 service that is of low value. For example, website payments for ring tones, pay-per-views, downloads, e-books, and subscriptions in the $1 - $3 range can be considered as micro payments. A 25 cent cost for a download or a 5 cent payment for a SMS are excellent examples of lesser worth micro payments.
There are two primary methods that an internet seller would possibly employ to accept a micro payment. The primary technique is to make use of a credit card, however the merchant fees would be quite high to accept a big number of payments for $1 and $2 micro payments, and this isn't often a price environment friendly option.
Some on-line enterprise owners whose websites sell micro payment valued good and providers will ask prospects for their credit card details, and will process fees and invoices to their clients' cards when account balances attain specified fee threshold amounts.
Another variation of this method is to cost the shopper's credit card a minimum charge amount of (say $10), and a credit in this quantity is then posted to the person's account, which depletes as nominal worth items and services are purchased from the vendor.
The issue with this technique is that prospects don't love providing their credit card particulars to strangers, and so they don't love the concept of making a down payment buy dedication for goods or providers which the customer might in the end resolve to not purchase.
The other option is to process cost for each micro transaction as it happens using an online cost system, and there are a few viable options with several corporations competing in this space, a few of which are much more value environment friendly than others, as I shall explain.
Let us take a look at the next instance:
Consider a micro cost within the quantity of $2 USD sent internationally (from one country to another) using a business account.
I've compared the charges that each of the next online cost processors would charge to handle this cost, and present the results below, from highest to lowest cost:
ZayPay.com $0.ninety nine flat charge = $0.ninety nine (forty nine% commission)
Moneybookers.com 1.9% +$0.forty = $.44 (22% commission)
PayPal.com Regular 2.9% + $0.30 = $0.36 (18% commission)
AlertPay.com 2.5% +$0.25 = $0.30 (15% fee)
PayPal.com Micropay 6% + $0.05 = $0.17 (8.5% fee)
Payments.Amazon.com 5% + $0.05 = $0.15 (7.5% fee)
CashSender.com 1.5% no minimal = $0.03 (1.5% commission)
The highest fees could be incurred if utilizing the services of Netherlands-primarily based ZayPay and UK-primarily based Cashbookers. PayPal's regular cost service would lead to an 18% payment commission, and even their lite service for mirco funds leads to an 8.5% commission. By far the bottom price micro payment processor is Canadian based CashSender, as their 1.5% commission doesn't have a fixed payment component. Thus, CashSender's charge is even a fraction of the price of the next lowest present on the list.
Many online sellers and website owners settle for micro payment as the life-blood of their enterprise operations. This means, many such payments are processed over the course of every month, all through the year.
Before we look at the various options and options in dealing with this pervasive problem, we should first outline what constitutes a micro payment.
A micro cost is a payment for an merchandise or 소액결제현금화 service that is of low value. For example, website payments for ring tones, pay-per-views, downloads, e-books, and subscriptions in the $1 - $3 range can be considered as micro payments. A 25 cent cost for a download or a 5 cent payment for a SMS are excellent examples of lesser worth micro payments.
There are two primary methods that an internet seller would possibly employ to accept a micro payment. The primary technique is to make use of a credit card, however the merchant fees would be quite high to accept a big number of payments for $1 and $2 micro payments, and this isn't often a price environment friendly option.
Some on-line enterprise owners whose websites sell micro payment valued good and providers will ask prospects for their credit card details, and will process fees and invoices to their clients' cards when account balances attain specified fee threshold amounts.
Another variation of this method is to cost the shopper's credit card a minimum charge amount of (say $10), and a credit in this quantity is then posted to the person's account, which depletes as nominal worth items and services are purchased from the vendor.
The issue with this technique is that prospects don't love providing their credit card particulars to strangers, and so they don't love the concept of making a down payment buy dedication for goods or providers which the customer might in the end resolve to not purchase.
The other option is to process cost for each micro transaction as it happens using an online cost system, and there are a few viable options with several corporations competing in this space, a few of which are much more value environment friendly than others, as I shall explain.
Let us take a look at the next instance:
Consider a micro cost within the quantity of $2 USD sent internationally (from one country to another) using a business account.
I've compared the charges that each of the next online cost processors would charge to handle this cost, and present the results below, from highest to lowest cost:
ZayPay.com $0.ninety nine flat charge = $0.ninety nine (forty nine% commission)
Moneybookers.com 1.9% +$0.forty = $.44 (22% commission)
PayPal.com Regular 2.9% + $0.30 = $0.36 (18% commission)
AlertPay.com 2.5% +$0.25 = $0.30 (15% fee)
PayPal.com Micropay 6% + $0.05 = $0.17 (8.5% fee)
Payments.Amazon.com 5% + $0.05 = $0.15 (7.5% fee)
CashSender.com 1.5% no minimal = $0.03 (1.5% commission)
The highest fees could be incurred if utilizing the services of Netherlands-primarily based ZayPay and UK-primarily based Cashbookers. PayPal's regular cost service would lead to an 18% payment commission, and even their lite service for mirco funds leads to an 8.5% commission. By far the bottom price micro payment processor is Canadian based CashSender, as their 1.5% commission doesn't have a fixed payment component. Thus, CashSender's charge is even a fraction of the price of the next lowest present on the list.
Many online sellers and website owners settle for micro payment as the life-blood of their enterprise operations. This means, many such payments are processed over the course of every month, all through the year.
